this in my life, no. this is the worst i have ever seen. ♪ >> bret: quite a year. like drinking from the fires who. thanks for your house tonight. that's it for "special report." as we said there are a lot of moving pieces on capitol hill with those words fiscal cliff. special 8:00 p.m. "special report" with all the updates to the fiscal cliff. all the coming and going, vice president biden heading to the hill, the negotiations. we're going over, folks, but we'll have it covered, fair, balanced and unafraid. >> trace: i'm trace gallagher

in for shepard smith it looks like we will go over the fiscal cliff at midnight. economists have been warning us the combination of tax hikes and spending cuts could cause another recession. now, president obama and the senate republican leaders say they are close to a deal to prevent tax hikes on the middle class. the trouble is, the house has gone home and won't be voting on anything tonight. >> for now, our most immediate priority is to stop taxes going up for middle class families starting tomorrow. i think that is a modest goal that we can accomplish. >> we all want to protect taxpayers, and we can get it done now. right now. >> trace: officials tell fox news agreement would let tax cuts expire on $450,000 instead of the president's cut off $250,000. extend unemployment benefits for another year it does not include any new spending cuts.

of course, that's the other big issue in this fiscal cliff standoff. we have team fox coverage. mike emanuel is live on capitol hill. but first to ed henry at the white house. ed, it looks as if we are taking the plunge. >> it does, trace. but what i think the white house is hoping here tonight is that lawmakers are going to have some framework by midnight tonight that basically says votes as soon as tomorrow or maybe even in early wee hours, 1:00 a.m., 2:00 a.m. to start moving forward on this so at least the markets get the signal that they will retroactively make sure that the tax rates don't go up. that the massive spending cuts don't take effect. all of this is still hanging in the balance. as you mentioned, conservatives not happy that there are no new spending cuts here. liberals not happy over the fact that they believe the president gave in too much to republicans on taxes setting a threshold of $450,000 a year instead of what they wanted which was 250,000. bottom line the president said that's the art of the compromise today. everyone is not going to get

everything that they want. and, in fact, he said the key here is to make sure that taxes don't go up on the middle class. take a listen. preventing that tax hike has been my top priority. because the last thing folks like the folks up here on this stage can afford right now is to pay an extra $2,000 in taxes next year. middle class families can't afford it. businesses can't afford it. >> but there is real problems here, because unclear whether even if the senate moves forward with this framework of a deal whether or not they will have enough democrats on board in the senate, some of them on the left are upset about the tax issue as i mentioned. we are hearing vice president joe biden may be heading up to the hill tonight to calm some of those democrats. that gives you an idea how urgent the situation is even if it were to pass the senate in the next 24 hours. it's unclear whether enough conservatives among the house republican also feel this is a good enough deal. there are still a lot of

hurdles to go, trace. >> republicans were none to please on what they called a campaign rally the president had today. >> white house officials insist the president was just sort of restating his principles in this whole deal. republicans saw him with middle class families here at the white house. they were cheering and applauding when the president said look, we're always goods to have a balanced approach as long as i'm president and i'm going to be the president for the next four years. it sounded like a victory lap to republicans. and that's why they teed off. take a listen. >> it's time to stop the campaigning. the president won. we politically. and they say inside the white house if republicans really did want to have null spending cuts, included in this deal,

then speaker john boehner should not have walked away from the 4 trillion-dollar debt deal that he was negotiating with the president in weekend weeks. that had significant spending cuts as well as the tax increases, trace. >> trace: we talk a lot about the taxes, ed, but what about those spending cuts, ed? >> the ones in terms of entitlement reform that's off the table until later next year apparently. in terms of the short-term, those automatic cuts known as sequestration that would hit the pentagon hard, some other domestic programs as well. that's the biggest stumbling block tonight to a deal. lindsey graham was on "fox news sunday" yesterday. he said he spoke to defense secretary leon panetta over the weekend. he had real concerns that these pentagon cuts will be devastating. take a listen. >> he says if we do this it will be shooting the defense department in the head and we'll have to send out 800,000 layoff notices the beginning of the year. he is worried to death that if we don't fix sequestration we are going to destroy the finest military in the world at the time we need it the

most. >> the bottom line tonight is both sides believe that there is a deal on the tax side of the fiscal cliff avoiding that, that you extend tax cuts basically for anyone making 450,000 or below. but the sequestration side of this in terms of the massive automatic spending cuts, they are very much up for grabs right now. and that is the big reason why we do not have a deal that is signed, sealed and delivered, trace. >> trace: ed henry live for us at the white house. of course, tomorrow is a federal holiday. analysts say that gives congress a little extra time to undo the damage from going off othe cliff. mike emanuel is on capitol hill. mike, what are we expecting tonight? >> it promises to be a busy night ahead. senators are still hoping to vote at some point later this evening before that happens. they are going to want the congressional budget office, nonpartisan organization to determine the cost or savings of any eventual package. all kinds of promises were made in washington.

but the cbo. the congressional budget office figures out exactly what something costs or how much money it may save. then the bottom line they need to find pay fors for automatic spending cuts that are due in the new year to defense and domestic programs. still a leading senate conservative says, he is weighing his options. >> you know, i want to see the details. and we'll see. so, you know, it's just we have gone through a lot in the meeting and i want to settle back and, you know, understand the details of it a little bit. we have the debt ceiling that's coming up soon. and i want to think about how this and that tie together and the timing of it. >> is he not alone. i have run into other senate republicans who say they want to get a good look at the language. they want to get a good look at whether the promises that they were told off camera away from the paperwork are delivered in the paperwork

before they decide whether they are definitely going to vote for an eventual package. trace. tras trace but then, mike, you have these democrats who say they don't really love the deal. >> that's absolutely correct there are a lot of people on the left who heard president obama during the campaign saying that he wanted to raise income taxes on those making more than $200,000 as an individual or 250 as a family. they don't like moving up this number they had hearts set on getting more income from the upper income earners. >> somehow the democrats have agreed to raise the level of from $250,000 to $450,000 this is one democrat that doesn't agree with that at all. >> that is one reason why the vice president of the united states. a former senator, long-time senator is expected to come up here to try to rally senate democratic support, trace.

let's assume it passes the senate. what about the house? >> i talked to abulbasher of in republicans up on the hill. today, yesterday, before, saying they think to get this through the house they need a strong bipartisan vote in the united states senate. that will show that a lot of republicans in the senate are sticking their necks out on this deal that, yes, does raise income tax revenue, but they also feel like it does important things to keep the country from going off the fiscal cliff and so, the wild card is what the house republican also do but they think the senate can give them a little bit of cover if it's a strong bipartisan vote in favor of this package, trace. >> >> mike emanuel life for us on capitol hill. mike, back to you as the news warrants. traders on wall street seem to like the progress that lawmakers made at least earlier today. that gave a nice boost to our 401(k)'s. take a look how the dow performed. you can see the spike beginning around 1:00 p.m. as

details of the framework began to emerge. the dow ultimately closed up triple digits. we have complete coverage of the wall street impact and the debt ceiling inside fox report. well, doctors say secretary of state hillary clinton is making excellent progress and they predict that she will make a full recovery after receiving treatment for a blood clot but secretary clinton is apparently still spending new year's eve in a new york city hospital. a spokesman says doctors found the blood close yesterday. they were performing a follow-up exam after secretary clinton fell and suffered a concussion earlier this month while recovering from a stomach virus. david lee miller is live in the new york city newsroom. david lee, where exactly did doctors find this clot? >> trace. this lot is in a vein between the brain and the skull behind her right ear. doctors say the clot was found following a routine follow up mri. in a written statement her doctor said and i quote it did not result in a stroke or neurological damage. she is in good spirits

engaging with her doctors, her family, and her staff. mrs. clinton has not been seen in public since she fainted and suffered a concussion earlier this month. her illness prevented her from scheduled visits overseas and testifying in front of congress about the attack in benghazi. trace? >> trace: david lee, what are they saying about her treatment. >> doctors are treating secretary clinton with blood thinners, they say she will be released from hospital once they establish a proper dosage. because she had a head injury doctors need to monitor her treatment. an unwanted side effect could be bleeding in her brain. when she will be released is not certain. tonight, as you mentioned, she will usher in the new year from the hospital. >> but she has had a similar problem before, right, david lee? >> indeed, she had. it was in 1998 that she had a blood clot behind her right knee. she later told an interviewer it was the worst health problem she ever experienced. doctors say patients who suffer from a clot often will

have repeat episodes. airplane travel can also be a risk factor. in her capacity as secretary of state, hillary clinton has logged hundreds of thousands of miles and visited more countries than any of her predecessors so flying in the future could be an issue. trace? >> trace: david lee miller live for us in new york. david lee, thank you. secretary clinton still scheduled to testify at some point about the consulate attack in benghazi, libya. that as a new report from senate lawmakers find the state department failed to do enough to protect diplomats there. coming up, accusations of shocking irresponsibility. and who else the lawmakers are blaming. and a warning about syria. just ahead, what a key diplomatic says about the country's chaotic future. all that as we monitor developments on capitol hill where lawmakers are apparently going to miss tonight's fiscal cliff deadline.

is quote moving toward historic moment when it will declare victory over its enemies with the goal of positioning syria to build a new world order that promotes national sovereignty and the concept of international law, declaring victory over its enemies to the rebels. that is code for the government saying we will crush you first. trace? >> trace: jonathan, we have heard warnings about the failure of the international community to really react to all of this. but some unusually strong language in the latest from

the u.n. peace envoy. >> yeah. the peace envoy currently a man much more given to diplomatic language. this time is he saying that syria, quote: will be be transformed into hell. this coming year if the international community doesn't act other officials predicting that the death toll could rise as high as 100,000 civilians currently estimate human rights observers being something like 45,000 civilian deaths which, of course, is all evidence of what he says syria has been hell for quite some time already. trace. >> trace: what about bashar assad, jonathan. any sign that he is losing the will for this fight? >> well, there is always rumors surrounding bashar assad and his family. there is always speculation. but the reality on the ground is that he continues to direct

his security forces to slaughter those syrian civilians. he continues to tell the security forces to fight for every inch of territory within syria. so, basically, 2013 is going to begin in the mind of president al assad as 2012 did, with preparing for a fight to the death. trace. >> trace: jonathan hunt, live for us in new york. jonathan, thank you. united states forces in yemen now apparently have a price on their heads, and so does the american ambassador. terrorists there reportedly offering a $23,000 payout to anyone who kills an american soldier and about 160,000 in gold for killing the american ambassador to yemen. those offers from al qaeda in the arabian peninsula. a branch that u.s. officials have called the terror network's greatest threat to america. the site intelligence group that monitors islamist web sites reports the threats came

n al qaeda audio recording. no response yet from washington. investigators are say a couple arrested in new york had papers labeled terrorist encyclopedia and bomb-making materials inside the apartment. the cops arrested the woman and boyfriend on saturday after receiving anonymous tip. they say they retrieved 7 grams of high explosives in the couple's apartment and instructions thousand make bombs. the woman was 9 months pregnant when they arrested her. and she has since given birth. a lawyer for one defendant said only othe whole situation is sad, that was a quote. well, a double whammy in our nation's capitol as lawmakers try to hammer out a deal on the fiscal cliff. there is word we are also about to hit the nation's debt ceiling. what does that mean for all of us? the answer, we hope, is ahead. ♪

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>> trace: a judge in texas has given the state the go ahead to cut planned parenthood funding. the move could affect an estimated 48,000 low income women who receive checkups and birth control through planned parenthood. the state pushed to cut funding because of the organization links abortion providers. lawyers for planned parenthood say they intend to keep fighting this. well, it was a grievous mistake to keep the u.s. outpost in benghazi open without enough security. and with threats in the area, quote. flashing red. that from a senate investigation that killed the ambassador chris stevens and three other americans. investigators accusing the state department of, quote: shocking irresponsibility in protecting americans in benghazi. catherine herridge live in our d.c. newsroom. catherine? >> well, trace, with the date still very fluid for clinton's

testimony. the chairman telling reporters investigators only found evidence mid level managers turned down requests for help. not the secretary of state. >> at no point my staff informs me this morning did we see any indication that there was a decision from second clinton specifically to deny requests for additional funding or security in benghazi. >> the senate report does faulted the white house, including president obama for inconsistent statements about whether the benghazi assault was a terrorist attack. given the intelligence suggested within hours that an al qaeda affiliate was responsible. as evidence, the report sites mr. obama's interview with 60 minutes on the day after september 12th where he says it's too early to know what happened and who is responsible. the committee's ranking member says these statements are part of a broader troubling pattern. the administration repeatedly has refused to name the threat that we face snearlings joe

lieberman and siewngeg collins write that senate investigators are also being denied a detailed time line on the cia talking points. specifically how the talking points were massaged with terms like al qaeda dropped. the report says the administration has, quote: spent weeks debating internally whether or not it should turn over information considered deliberative to the congress the report also concluded that the military report for africa had no idea of the depth and breath of the cia operation and that the defense department would be called on to evacuate two dozen americans on such short notice, trace. >> trace: catherine herridge live for us in washington. thank you. another set back for the venezuelan president hugo chavez in his battle with cancer. the country's vice president said president chavez is suffering new complications after a recent surgery and that his situation is, quote: delicate. venezuelan government ministers held mass today at the presidential palace in the capital city.

president chavez is due to begin a third term as venezuela's leader next month. it's not clear whether he will be healthy enough for inauguration. back here in the u.s. a million people expected to pack times square to watch the ball drop. and there will be lots of extra security keeping an eye on them. plus, dropping the ball in washington. word is we will plum met off the fiscal cliff at midnight. we will get updates from capitol hill and the white house next. a dry mouth sufferer doesn't have to suffer. i would recommend biotene. the enzymes in biotene products help supplement enzymes that are naturally in saliva. biotene helps moisten those areas that have become dry. those that are suffering can certainly benefit from biotene.

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alaska, the coast guard rescued a crew from an oil drilling barge off the state's southern coast. crew members say engine problems on their tow boat left the barge drifting toward land at risk of running aground. we're told heavy winds and high seas made rescue efforts difficult but engineers eventually got the engine running. and coast guard choppers were able to evacuate all 18 people from the barge.

virginia. a man ran 52 miles yesterday wrapping up a year-long journey to raise awareness for type 2 diabetes. several of the family members had the disease. the idea for the series of runs started back in 2011 new year's resolution. >> every weekend i have done this additional mile. so the first week in january i ran one mile. second week i ran two. he says he is planning another running challenge for next year and may even write a book. alabama. bakers unveil the massive moon pie ahead of the new year. >> the 80-pound desert is part of the annual moon pie over mobile celebration. a new year's eve tradition. proceeds from the event will go to a shelter for homeless women and that's a fox watch across america. i'm trace gallagher in for shepard smith. this is the fox report. and even though we are set to fall off the fiscal cliff tonight, traders on wall street were clearly happy that

lawmakers moved closer to a deal. the dow shot up 166 points for its first positive day in more than a week. the nasdaq gaining 59 to close back above 3,000. the s&p up 24. we have team fox coverage from the fox business network, rich edson is on capitol hill. first to peter barnes with the market reaction. peter? >> well, trace. the dow was up more than 1% today on the prospect that at least all -- or most of the bush tax cuts could be extended for most people under this framework deal. that would be worth more than $3 trillion over the next 10 years. that would be $3 trillion or more that would stay in consumer's pockets so they could go out and buy cars and houses and refrigerators and ipads and iphones which would be good for corporate profits. >> if we get a fiscal deal that really addresses the long-term trajectory, that might be the final piece of

the rubiks cube that could lift markets and take them up to double digit gains for 2013. >> that would follow double digit gains for two of the three major indices. with the gains today the dow jones industrial average finished up more than 7% for the year. today the last dave trading. the broader s&p 500 was up about 13.5%. the tech heavy nasdaq was up almost 16%. it includes apple, which sells those gizmos, trace? >> peter are there any parts of the framework for a deal that will affect investors? >> yes. on dividends and capital gains. and there is some new treasure holds out here for what constitutes wealthy taxpayer. and under this framework, the capital gains and dividends rates for people who make under $400,000 a year for an individual, $450,000 a year as a family, would continue to pay 15% taxes on their capital

gains and dividends. but for families and individuals who make higher than those treasure holds, more than that, their capital gains and dividend rates would go up to 20% under this deal, trace. >> trace: meantime the treasury department reports the u.s. has just hit its borrowing limit. peter, what's the response on that? >> the 16.4 trillion-dollar debt ceiling, the treasury department announced today that it, in fact, hit it as it had, today as it had warned last week. but it does not mean that the government will stop paying its bills. la the treasury secretary told congress that by playing with some government accounts, for example, not reinvesting in certain government employee retirement programs, the treasury could create about $200 billion worth of additional head room in the debt ceiling, which, depending would last us another two months or so. trace? >> trace: two months, two days, who knows?

peter barnes live for us at the white house. thank you. as we had reported sources said lawmakers have agreed to let tax cuts expire for some the wealthiest americans as part of their framework for avoiding the fiscal cliff. but spending cuts still very much up in the air. team fox coverage continues with rich edson on capitol hill. rich, what's the latest on that framework. >> trace, in just a few hours, tax rates across the board are scheduled to increase. this proposal deals with it. this is the framework that senators have been discussing here. families would pay the same income tax rates they do now on the first $450,000 of income amounts of more than that they get a tax increase. one year extension of long-term unemployment benefits. doctors are scheduled to get a significant pay cut. this plan prevents that and on the estate tax, can you palings -- pass on $5 million tax tree anything more the government takes 40%, trace. >> trace: what's the hold-up from lawmakers exactly? >> in some corners, it's the spending cuts dealing with the

sequester. those automatic spending cuts that are supposed to hit the economy this year or this upcoming year. there are democrats that have issue. senate democrats have not signed off on this framework yet. with that, vice president joe biden is scheduled to come to the hill to talk to senate democrats. he negotiated this deal with mitch mcconnell. still there are senate democrats some of them who say this tax plan favors the rich. >> if we're going to have some kind of a deal, the deal must be one that really does favor the middle class. the real middle class. those that are making 30, 50, $70,000 a year. that's the real middle class newark. -- america. as i see this thing developing, quite frankly, as i have said before, no deal is better than a bad deal and this looks like a very bad deal the way this is shaping up. >> some other senate democrats we have spoken to here on capitol hill say, look, it's not everything we wanted but it's a good enough compromise we should move forward with it senate republicans, especially in leadership say look, we have struck a deal with the

white house and vice president joe biden here, we should vote on this tax part tonight. trace? >> trace: rich edson live for us on capitol hill. thank you. as lawmakers continue working on a compromise, much of the nation getting ready to watch the ball drop in times square. and security in new york city as tight as a drum. a few hours ago, the nypd started allowing revelers into times square. we're told thousands of extra cops are on duty. radiation detectors. of course, if everything goes without a hitch, the 1 billion people expected to watch the ball drop won't even know the security is there. and that's the point. our own megyn kelly and bill hemmer are live in times square. they are hosting tonight's all american new year's eve right here on the fox news channel. i just checked with the weather center. they are saying like it's a

balming 30, 35 out there. what you guys have endured in past years that is actually quite comfortable. >> no. last year was the best. >> last year was great. >> and i got -- credentials in case anyone challenges me this year. there was an incident last year. >> bring it on. >> terror warnings coming to us. >> hopefully we don't need any of that. >> no. >> at the end of the night, we want to make sure everybody goes home safe and sound and everything is cool. you know what we have gotten here six years together you and me we have never gotten rain. i mean, now, trace, is s. that like talking about the no hitter in the eighth inning. the skies are clear tonight in new york. >> don't hex anything, bill. >> this is like when i drive with my husband and he is like this is the kind of driving i like. we have had no traffic. we -- this is smooth sailing until the end and bam. >> you don't talk about it. thank you. >> i think the skies are beautiful tonight. i don't think we need to worry about it. >> it's fantastic.

here in times square. the energy is palpable. everybody is so excited. few minutes before and after midnight are what it is all about. we are so excited because not only do we have bill and i, but we have got gutfeld with us tonight. , which you know, you never know where that's going to go. >> you don't. >> last year it went in a very interesting direction. one that we could not anticipate. he is here. kimberly guilfoyle is with us. >> pat benatar. >> benatar is going to play. we got a terrific group from broadway. they are going to hear all about tonight. >> and never to be outdone by our competition. i heard that bill may be taking things off tonight. >> taking what off tonight? >> that's not the man's job. >> i'm just saying. tune in tonight at 11:00. >> you said follow me, right, trace? >> >> trace: it's kind of like the old america's newsroom today, guys when bill couldn't get a word edge wise. guaranteed half the time old home week, right? >> going to be great.

are you going to stand for that? >> what kind of treatment is is this? >> came out early. the freezing cold to be with you on fox report. this is what we -- i'm out of here. good luck, bill. >> listen, you guys apparently this year's running now. you guys have been. show tonight. going to hear from pat benatar >>-million-dollar quartet. right now on broadway is going to perform live here in times square. you are not going to believe how awesome these guys are. >> two words you won't hear tonight, trace? go ahead. >> fiscal cliff. that's not true at all. >> yes, you are. we are going to go cliff diving together. make it happen. new years and higher taxes. see you shortly. >> yippee. >> if they are still negotiating at 11:00 p.m. eastern time. we may hear the fiscal cliff come out oof bill hemmer and

megyn kelly's mouth. thank you. great stuff. don't miss bill and megyn tonight on the all american new year's eve right here on fox news channel. 11:00 p.m. eastern time. believe me, it is well worth your time it is great fun out there in times square. of course, you might want to drink your champagne responsibly. at least if you are planning to get behind the wheel tonight. we'll break down the facts and the myths behind drinking and driving next. plus, a big day of shakeups in the national football league where teams have sacked not one but seven head coaches. black monday at the nfl as "the fox report" continues on this new year's eve. ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy.

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roughly 150,000 people for driving under the influence. triple a reports more than half of fatal car accidents last year or last new year's eve involved a drunk driver. fox news william la jeunesse heads to the bar to bust some drinking myths and finds out just how much alcohol it takes to get drunk. if he said i will take you home tonight would you be willing to do so? you said you would. but what our audience didn't know had been drinking jack and cokes for the last three hours. 8 in total. >> i think i have had five glasses of wine and i'm starting to slur my speech. >> how much did you drink. >> six glasses. >> i have had seven glasses of white wine. 10 coors light. >> 8 jack and coke. >> 13 vod canchts our night of boozing had one purpose to. dispel misconceptions about drinking and driving.

cove, exercise, shower does that sober you up. >> no. it wakes up. still stimulated. still feeling the effects. bigger person fat or overweight, can they handle their alcohol better? >> no. people that are heavier have less water because fat has less water. >> is it possible to feel sober at the bar and not be sober behind the wheel your blood alcohol content continues to rise after your last drink for a good 30 minutes or so. >> as we saw with our volunteer ashley. >> i'm drunk and i honestly believe i would blow over 00 legal limit. >> tight seal. >> .069. >> come on. i'm hammered. >> your blood alcohol is rising for another 30 minutes. >> which is why many get arrested after leaving the bar as it continues to influence judgment and coordination. >> can still be arrested under a .08. you can be impaired. people's tolerances are different. >> some are buying pocket

breathalyzers to check their blood alcohol. not all store bought models are created equal. >> this is really unreliable i would say. now 3.04. >> two breathalyzers we bought were grossly inaccurate. one was on the money but police say these testers are less effective over time and owners should think twice before risking their license on their accuracy. >> learned that no matter what you drink you can only metabolize so much. regardless of what you feel, your blood alcohol is higher than what you think. >> no winners, search a loser. when you drink and drive, you lose. >> in los angeles, william la jeunesse, fox news. >> trace: if you plan to pop some bubbly tonight. try not to go blind. improper uncorking techniques warm bottles cause severe injuries every year. can go flying as fast as 50 miles per hour. that's enough to shatter glass and permanently damage your

vision. so here are a few safety tips chill the bottle to 45 degrees or colder. warm bottles are more likely to pop unexpectedly. don't shake the bottle because that can increase the speed the cork flies off the bottle. another suggestion, place a towel over the bottle to cover the cork and don't point it toward your eyes. quite a few nfl coaches will looking for work in the new year. just a day after the regular season ended seven of the league's 32 teams fired their head coaches. that includes the four guys on the top row, all of whom once led their respective teams to the super bowl. perhaps the most notable. philadelphia eagles coach andy reid who lost his job after 14 years with the squad. analysts say some of those coaches should have very little trouble finding a job with all of the new openings. listen. >> certain coaches will have their pick because they don't really have the stain of too many spots that they have not succeeded. >> at least one coach still

has his job. despite a losing record. and a quarterback controversy. the new york jets today announced rex ryan will be back next season. but the team did let go its general manager. well, there is no doubt mexican drug cartels are a major problem south of the border. but now we're getting new details about the extent of their connection to gangs right here in the u.s. that's ahead. plus, a man trapped for more than a day after plunging 60 feet down into a well. the rescue mission next on "the fox report" as we keep an eye on washington now approaching four hours until we fall over the fiscal cliff. d. so will bounty select-a-size. it's the smaller powerful sheet. look! one select-a-size sheet of bounty is 50% more absorbent than a full size sheet of the leading ordinary brand. use less, with bounty select-a-size.

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>> trace: new evidence now that mexican drug cartels are increasingly extending their reach across the border and into american neighborhoods. according to a recent fbi report. nearly 40% of all gang members in the u.s. have some ties to the cartels. authorities say the groups are now working directly with street and prison gangs in some states,making police work even more difficult. adam housley joins us now with more. what are some the ways the cartels have kind of made this move? >> well, first of all, they have found a way to sir couple navigate law enforcement we talk to local seeing more. middle man better business. also, at the same time, better crackdowns along the border means the cartels really want to put some of their business here on this side of the border, less of a chance that on 00 other side. we talk to local law enforcement in the southwest, especially here in southern california which has the most gang members in the country. they will tell you they are concerned they are working together but it's a difficult process. take a listen. >> i think most law enforcement agencies already

put this gang activity a huge priority because of the violence in our communities. violent crimes a huge priority. we got to keep the dopers on their heels. because that's the power, that's the money. it all works together. >> and, trace, these same local law enforcement will tell you they are worried about the change south of the border. the mexican border may not crack down now that they have new leadership. >> trace: sounds like a troubling trend what are they doing to combat it? >> working together. the study you mentioned in the intro how many people in the southwest are involved with gangs. other members interesting too. one in three police officers in the southwest according to the study by the fbi say the gang activity and drug trade in their area has increased in over the last two years. the connection. they are worried the middle man is gone which means more brutality and they are seeing it. adam housley live. thank you. firefighters rush to rescue a man who had fallen 60 feet into a well. it's our top story as we go around the world in 80

seconds. ukraine, the father of four apparently fell in while trying to clean the narrow pit. it took crews more than a day to pull him to safety. emergency workers treated the man at the scene and local media reports that he was not seriously hurt under i can't, group of students put on a risky show for crowds. some performed tricks on motorcycles. drivers stacked classmates on their shoulders while others drove through rings of fire. other group did elaborate acrobatic routines on top a rotating platform. united kingdom. drivers battling it out in the annual car jumping championships in southern england. competitors attempting to launch off a ramp and clear a line of 10 cars. many came up short and crashed but a 31-year-old mechanic jumped the entire lotted. and drove away with the winner's trophy and bragging rights.

check republic baby prague. thousands of people followed the birth through a 24 hour streaming web cam and people have reportedly been visiting in record numbers workers say they will name the newborn once they determine its gender that's a wrap on this fox trip around the world in 80 seconds. folks are apparently so fed up with the so-called fiscal cliff that they want it banned from the english language. that's according to lake superior state university's analyst of words to be banished for 2013. it's based on public nominations it didn't just made the list it topped it. a futurecast other terms that made the cuts. spoiler alert. trending, super food and guru. unfortunately we still have to talk about the fiscal cliff, at least for the next four hours. lawmakers on capitol hill have

been trying to strike a deal before the midnight deadline. another update is next. on "the fox report." [ lisa ] my name's lisa, and chantix helped me quit. i honestly loved smoking, and i honestly didn't think i would ever quit. [ male announcer ] along with support, chantix is proven to help people quit smoking. it reduces the urge to smoke. it put me at ease that you could smoke on the first week. [ male announcer ] some people had changes in behavior, thinking or mood, hostility, agitation, depressed mood and suicidal thoughts or actions

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ok, did she seriously just say that? geico. just click away with our free mobile app. mommy's having a french fry. yes she is, yes she is. [ bop ] [ male announcer ] could've had a v8. 100% vegetable juice, with three of your daily vegetable servings in every little bottle. . >> trace: up updating our top story tonight we are about to go off the fiscal cliff. that's the word from washington. some senators say they are still hoping to vote on a deal tonight but the house has already called it quits and won't be back until tomorrow. team fox coverage continues. mike emanuel live on capitol

hill. where do things stand right now? >> trace, we expect that this deal will get put into legislative language and the congressional budget office will determine whether it saves money or costs money. try to give a fair analysis. we're expecting vice president joe biden may come up here at some point. senate democrats are telling us they expect that to be the case. there is some evidence of heart burn on the left some democrats who don't love the tax figure where it is set. they were hoping raising taxes on those making $250,000 and couples making more than 2506789 it looks like 450. but a retiring senate republican says it's a compromise. it's probably a fair deal. it's not something any of us would say i love it, i don't love it. but i think it is a good job of negotiating where there are some wins and some laws. >> so bottom line, there is

still work ahead here in the senate tonight. if it were to pass at some point later tonight, then the house would take it up tomorrow, trace. >> trace: mike, got to be a number of lawmakers fed up with the whole process. >> that's absolutely right. we heard a number of lawmakers saying it's december 31st, we could have worked this out long ago. here is one house democrats complain speaker, the american people are looking at congress with disdain and rightfully so. with the deadline of the fiscal cliff only hours away. we failed to reach a reasonable compromise to move the economy forward and ward off painful tax hikes on the middle class. >> a lot of people feeling like in both the house and the senate this process could have been handled much better a long time ago with open hearings rather than having two people negotiate this deal at the last minute, trace. mike emanuel back to us on capitol hill. any updates as they come in. thank you. on this day in 1938, police tested the world's first